Why Sustainable Procurement is Worth it… and Necessary

Webinar Series Mission

To provide municipalities with a menu of coordinated, voluntary actions, to continually become more sustainable; to provide resources and tools to assist municipalities in implementing sustainability actions and advancing their programs for the benefit of all residents; and to certify and recognize municipalities for their ongoing sustainability achievements. Webinar Collaborators

Part of the National Network of Statewide- Local Sustainability Organizations (nnsso.com) Sustainable CT Core Partners Today’s Presenters

Heather Burns, Dr. Anastasia O’Rourke, Stacey Foreman, Founder and CEO of Board of Directors of the City of Portland, the Connecticut Sustainable Purchasing Leadership Oregon’s Sustainable Sustainable Business Council and Special Consultant, Procurement Council Industrial Economics Inc. Coordinator Questions?

[email protected] [email protected] [email protected] 860.465.0258 609.771.2938 717.236.9469 The Business Case for Sustainable Procurement

www.ctsbcouncil.org Overview Overview COST SAVINGS Overview • Return on Investment exists for investing in efficiency measures within waste, water, and electricity.

• Tend to be category- or industry specific purchases.

• Collective procurement example: Connecticut-based Stamford2030 created a Marketplace web platform that helps purchasing departments for educational institutions and corporations buy large quantities of green, ENERGY STAR- and WaterSense-qualified products that help property owners improve environmental performance. Overview LOCAL PURCHASING = LOCAL Overview ECONOMIC GROWTH

• Local is defined differently, but typically means purchasing from independently owned and operated businesses that are located near-by.

• According to Business Alliance for Local Living Economies, two- thirds of private sector jobs created in 2014 were generated by independent businesses.

• American Independent Business Alliance found that local, independent businesses have a significantly higher circulation rate than chains. Overview High Road Business Practices

High-road business see their employees, the communities where they operate, and the products and services they provide as equally critical to their financial success. These companies hold a long-term perspective and see the workplace as a vehicle to create significant business and social good.

High-road businesses know they are far likelier to thrive when they provide family-friendly benefits, offer flexibility, pay a livable and fair wage, invest in employee growth and development, cultivate inclusion, govern fairly and transparently, engage with communities, manage the supply chain responsibly, drive environ- mental best practices, and promote health and safety.

www.ctsbcouncil.org Overview Buy In

www.ctsbcouncil.org Diversity & Inclusion

www.ctsbcouncil.org Worker Ownership

www.ctsbcouncil.org Resources

• Sign up for our newsletter for local sustainable procurement news, events and resources

• Join CT Sustainable Business Council Working Group

• Read The Power of Sustainable Purchasing Release date: May 22, 2018

www.ctsbcouncil.org Stay Connected

Heather Burns

Connecticut Sustainable Business Council [email protected] www.ctsbcouncil.org

www.ctsbcouncil.org SUSTAINABLE PROCUREMENT AT CITY OF PORTLAND, OREGON

May 7, 2018 Stacey Foreman, Sustainable Procurement Coordinator Outline

2

 What Sustainable Procurement Looks Like At the City  How We Got to Today  Lessons Learned COP Sustainable Procurement Program

3

 1 FTE dedicated to sustainable procurement program  Housed in central procurement office  Responsibilities:  Research products, standards, best practices  Craft specifications, templates, and policies  Procurement process integration  Hands-on project implementation assistance  Education and outreach  Relationship building  Small program budget for misc. expenses; occasional consultant work How We Got to Today

4

 WHY Sustainable Procurement at the City? Example Values  Aligns with Existing Values Stewardship Diversity  External Stakeholder Pressure Excellent Customer Service Responsive  Walk Our Talk Healthy, Productive Employees  Huge Opportunity Best Value Contracting GHG Reduction  Right Thing to Do Healthy Community Cost Optimization Leadership Due Diligence Risk Management How We Got to Today

5 Program Evolution

Structured Opportunistic Strategic

Steering What’s the next Strategic Plan Committee with procurement? High Value, High Impact Actions/Projects Multi-Stakeholder Action driven by Value Alignment Commodity hot topics/policies Synergies Workgroups

2002 2018 Program Vision (2018)

6

In every purchase, the City is a force for greater good.

We think holistically and act responsibly. We advance equity, environmental protection, community health, and market transformation. Lessons Learned

7

 Ok to start small and gradually build  Seek value alignment opportunities  Or how does sustainable procurement help:  Facilitate a gain  Alleviate a pain  Collaborate  Do not reinvent the wheel  Build key relationships  Tell your sustainable procurement stories Website: www.portlandoregon.gov/buygreen Email: [email protected]

THANK YOU!

8 any questions? IEc

An Introduction Presented By: Dr. Anastasia O’Rourke Special Consultant, Industrial to Sustainable Economics, Inc. Purchasing [email protected] Board, Sustainable Purchasing Leadership Council (SPLC) www.sustainablepurchasing.org Operations Supply Chain

INDUSTRIAL ECONOMICS, INCORPORATED 2 Operations Supply Chain

GHGs 8X State of CA Analysis

INDUSTRIAL ECONOMICS, INCORPORATED 3 Operations Supply Chain Human Health Climate Change Deforestation Safety

Toxic Exposure Supplier Diversity

Economic Development Waste

Collusion & Fraud Biodiversity Discrimination Living Wages

INDUSTRIAL ECONOMICS, INCORPORATED 4 There is also an opportunity for this spending to do good, to promote and enable sustainable communities to thrive.

$

INDUSTRIAL ECONOMICS, INCORPORATED 5 Why focus on purchasing to advance sustainability? Purchasers: …are uniquely positioned to demand transparency into the upstream and downstream impacts of goods and services. …are capable of incorporating sustainability criteria into purchasing decisions at a scale that can shift markets. …are specially equipped to drive down the cost of sustainable products and services so that everyone can afford them. …are already responsible for ensuring that end-users understand, like, and adopt new products and services.

INDUSTRIAL ECONOMICS, INCORPORATED 6 So what is sustainable purchasing?

Sustainable purchasing means making sure that our suppliers – and the products and services they supply – deliver value for money and generate benefits not only for our organizations, but also for the environment, society, and the economy.

(SPLC 2017)

INDUSTRIAL ECONOMICS, INCORPORATED 7 So what is sustainable purchasing?

•ACTIONSSustainable purchasing means making sure that our suppliers – Suppliersand the Screening products and and services Assessment they supply – deliver value for money and generate benefits not only for our organizations, • Requesting information / certifications but also for the environment, society, and the economy. • Analyzing responses Supplier Selection (SPLC 2017) • Positive criteria, e.g. buy from local firms, supplier diversity, diverse owned firms Supplier Engagement • Helping suppliers improve on their sustainability performance

INDUSTRIAL ECONOMICS, INCORPORATED 8 So what is sustainable purchasing?

Sustainable purchasing means making sure that our suppliers – and the products and services they supply – deliver value for money and generate benefits not only forACTIONS our organizations, but also for the environment, society,Prioritizing andgoods theand services economy. that have the most impact • Needs assessment and spend analysis • Identify contracts ready to be changed; or that can be accessed Creating sustainable specifications and selection criteria (SPLC 2017) • Reviewing existing guidance for the category • Considering product/service availability • Writing specs, relying on existing ecolabels and standards Buying more sustainable goods and services • Encouraging buyers and vendors to meet criteria • Tracking purchasing activity

INDUSTRIAL ECONOMICS, INCORPORATED 9 Example: Higher Education Purchasing

purchasing 5 categories

Top 5 Categories of total by Environmental Impact 64% spending 1. Electricity 2. Food, & Dining 3. Construction & Maintenance of estimated 4. Fuels 83% impacts 5. Sanitary & Waste

INDUSTRIAL ECONOMICS, INCORPORATED 10 So what is sustainable purchasing?

Sustainable purchasing means making sure that our suppliers – and the products and services they supply – deliver value for money and generate benefits not only for our organizations, but also for the environment, society,ACTIONS and the economy. Incorporating “value for money” selection criteria • Considering life cycle costs and quality (SPLC 2017) • Looking beyond lowest cost / initial price • Training buyers on applying these principles and criteria • Analyzing and communicating performance to key stakeholders, e.g. cost savings achieved.

INDUSTRIAL ECONOMICS, INCORPORATED 11 So what is sustainable purchasing?

• Sustainable purchasing means making sure that our suppliers – and the products and services they supply – deliver value for money and generate benefits not only for our organizations, but also for the environment,ACTIONS society, and the economy. Measure and Communicate Benefits • How sustainable purchasing helps to deliver on policy goals(SPLC 2017) • Environmental, social and economic benefits to the organization • Environmental, social and economic benefits to the community and environment Collaborate to achieve greater impact, and share results • Collaborate with others on advancing sustainability • Report and share your progress and results.

INDUSTRIAL ECONOMICS, INCORPORATED 12 To do all these things, we recommend …

 Engaging stakeholders in strategy development and goal setting, including leaders  Creating a policy that establishes a SP program  Providing financial resources to the SP program  Nominating an individual to lead the work  Tracking and reporting on progress  Benchmarking your program against others  Learning from your peers in cities, and other sectors  Sharing your experiences and results.

INDUSTRIAL ECONOMICS, INCORPORATED 13 Helpful Resources

• Sustainable Purchasing Leadership Council • City of DC’s Sustainable Purchasing Program • ISO 20400 Standard • USDN / RPN Sustainable Procurement Playbook for Cities • NASPO Green Purchasing Guides • ICLEI Procura+ • US EPA EPP Program.

INDUSTRIAL ECONOMICS, INCORPORATED 14 Thank you and stay in touch!

Dr. Anastasia O’Rourke [email protected]

+1 203 215 1575 15